Reflecting on the first half of this year, I've had numerous conversations with successful advisors who recognize they’ve been stuck in a rut; realizing they’ve been an earner rather than an enterprise owner. Whether you need a new system or a fresh approach, the key to overcoming this is to break free from old habits and adapt to the evolving landscape.
Level up your business: 6 actionable tips to help build your enterprise value:
- Hire an assistant. Your time is valuable. You need to keep the value of your “game time” as high as possible. If you aren’t consistently talking to clients and prospects then you are likely decreasing your enterprise value.
- Streamline and systemize business processes. Have you heard the saying, “product makes money, systems make fortunes”? In our industry, building a valuable practice goes beyond expertise. Nobody wants to buy your job. They want to buy your business. Having a well-defined system with documented processes is key. If you are still winging it day to day and don’t have written processes for your firm, you are decreasing the value of your practice. By taking the time to streamline and systemize, you’ll build value to your business.
- Engage your best clients. Your best clients make up 80% of your revenue or more. To foster deeper connections, consider implementing a process for ongoing engagement. This might involve hosting focus groups for garnering feedback and begin to build a community your clients will want to plug into while attracting new opportunities to bring new introductions to your firm.
- Optimize and leverage your value. In today’s competitive landscape, price isn’t always the best strategy. Only one firm can charge the lowest fees, but firms that communicate the strongest brand message attract clients who focus on value, not cost. Consider this: when was the last time you updated your firm’s marketing materials? It may be time to update your website, brochures, bios, and other brand pieces to communicate your value proposition. By doing so, you can start attracting clients who appreciate the experience you offer and will buy into your process.
- Get a professional valuation of your firm. Not only with this add motivation, but it will also show you where the opportunity gaps exist in your practice to help increase your valuation. Everything you do now affects your business valuation when you decide to exit. If you are 5-10 years from retirement, it’s time to get your firm in order.
- Connect with a consultant to learn ideas and best practices. A consultant can be a resource, offering a wealth of experience and proven strategies to help you identify areas of improvement and implement efficient systems. Chances are, they’ve already helped someone who has gone through a similar situation and can provide you with practical guidance to get you on track to a more efficient practice.
As a business owner, it's essential to run your business strategically, adapt and evolve, and plan for the long term. If you want to close opportunity gaps and increase your enterprise value, contact one of our business development consultants today to skip the trial and error and get straight to the answers.
